OMERS Infrastructure has announced that it has signed a purchase and sale agreement with SNC-Lavalin Group Inc. for the acquisition of a 10.01 per cent stake in 407 International Inc., which holds a concession over 407 Express Toll Route (407 ETR). The purchase price consists of an upfront payment of C$3.0 billion. The sale is subject to certain shareholders’ rights, including rights-of-first refusal.
“Today’s announcement reflects our continued commitment to seek investments involving large-scale, core infrastructure assets around the world, in line with our long-term perspective as an owner,” said Ralph Berg, OMERS Global Head of Infrastructure. “This investment in 407 ETR, located in our home base of Ontario, will build upon our transportation-related holdings. This portfolio of high-quality assets covers all modes of transport, and stretches from the United States and the United Kingdom to Germany, India and Australia,” he added.
407 ETR is the world’s first all-electronic, open-access toll highway. The road currently stretches 108 km across the Greater Toronto Area.
Macquarie Capital acted as lead financial advisor to OMERS, with financial co-advisory by Scotiabank, and McCarthy Tétrault LLP acted as legal counsel.